In a report published Monday, UBS analyst Michael Lasser upgraded Best Buy Co. Inc. BBY from Neutral to Buy and raised the price target from $35 to $49.
Lasser noted that CY14 estimates will likely move to greater than $3 versus the current $2.75. Likewise, CY15 estimates will likely move from $3.09 to $3.50+. These increases are due to factors including a gaming boost, connectivity with more vendors, Amazon and Google kiosks in stores and Best Buy's Renew Blue plan. The Renew Blue plan is expected to produce $1 billion in cost savings.
UBS forecasts that Best Buy will have $1.1 billion in net cash by the end of the year, and will likely grow another $700 million by the end of FY 2015. Lasser further comments, "The complicated nature of Best Buy's business means that its share can easily become mis-priced. We think the stock still under-appreciates the company's earnings potential. As further signs of its progress emerge, we think the shares will move higher."
Best Buy is up 258% YTD versus the S&P 500 which is trading +33% for the year. Shares of Best Buy closed at $42.41 on Friday and is currently +3.04%.
Market News and Data brought to you by Benzinga APIs© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Loading...
date | ticker | name | Price Target | Upside/Downside | Recommendation | Firm |
---|
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in